NRS 353B.850 Establishment
of account; requirements; termination and renewal of agreement to establish
account; prohibition against establishing account for child attending school
outside this State or homeschooled child.

NRS 353B.860 Grant
of money required to be deposited in account; amount of grant; deduction of
administrative costs; money remaining in account carries forward if written
agreement renewed.

NRS 353B.870 Limitations
on use of money deposited in account; refunds and rebates.

NRS 353B.880 Management
of account; annual audits; State Treasurer authorized to take action upon
determination of substantial misuse of money in account.

1. There is hereby created a Board of
Trustees of the College Savings Plans of Nevada.

2. The Board consists of five members
composed of:

(a) The State Treasurer, who may name a designee
to serve on the Board on his or her behalf.

(b) The Director of the Office of Finance, who
may name a designee to serve on the Board on his or her behalf.

(c) The Chancellor of the System, who may name a
designee to serve on the Board on his or her behalf.

(d) Two members appointed by the Governor. A
member who is appointed by the Governor must possess knowledge, skill and
experience in the field of:

(1) Accounting;

(2) Finance;

(3) Investment management; or

(4) Marketing.

3. A member of the Board who is appointed
by the Governor:

(a) Serves for a term of 4 years;

(b) Except as otherwise provided in paragraph
(c), may be reappointed by the Governor; and

(c) Except as otherwise provided in this
paragraph, may serve for only two terms. A member who is appointed to fill a
vacancy in an unexpired term that is not longer than 3 years may serve two
terms in addition to the unexpired term.

4. The State Treasurer or his or her
designee shall serve as the Chair of the Board.

5. Each member of the Board serves without
compensation, except that each member is entitled to receive:

(a) The per diem allowance and travel expenses
provided for state officers and employees generally; and

(b) Reimbursement for any other actual and
reasonable expense incurred while performing his or her duties.

6. As used in this section, the term
“College Savings Plans of Nevada” includes the Nevada Higher Education Prepaid
Tuition Program set forth in NRS 353B.010 to 353B.190, inclusive, and the Nevada College Savings
Program set forth in NRS 353B.300 to 353B.370, inclusive.

NRS 353B.007Insurance coverage to protect prepaid tuition contracts and
savings trust accounts.The Board
may endorse insurance coverage written exclusively to protect prepaid tuition
contracts, and purchasers and beneficiaries of prepaid tuition contracts
pursuant to NRS 353B.010 to 353B.190, inclusive, and the regulations adopted
pursuant thereto, and savings trust accounts and account owners, and
beneficiaries of savings trust accounts pursuant to NRS
353B.300 to 353B.370, inclusive, and the
regulations adopted pursuant thereto, which may be issued in the form of a
group life policy. The provisions of title 57 of NRS are not applicable to the
Board in carrying out the provisions of this section.

NRS 353B.009Money on deposit in prepaid tuition contract or savings trust
account not considered asset of parent, guardian or student for purposes of
determining certain eligibility.Notwithstanding
the provisions of any specific statute to the contrary, no money on deposit in
a prepaid tuition contract pursuant to NRS 353B.010
to 353B.190, inclusive, or a savings trust account
pursuant to NRS 353B.300 to 353B.370, inclusive, may be considered an asset of a
parent, guardian or student for the purpose of determining the eligibility of a
person for a grant, scholarship or work opportunity that is based on need and
offered or administered by a state agency, except as otherwise required by the
source of the funding of the grant, scholarship or work opportunity.

NRS 353B.010Definitions.As
used in NRS 353B.010 to 353B.190,
unless the context otherwise requires, the words and terms defined in NRS 353B.030 to 353B.070,
inclusive, have the meanings ascribed to them in those sections.

NRS 353B.090Development of Program by Board; regulations. [Effective through
June 30, 2016.]

1. The Board
shall develop the Nevada Higher Education Prepaid Tuition Program for the
prepayment of tuition at a guaranteed rate which is established based on the
annual actuarial study required pursuant to NRS
353B.190 for undergraduate studies at a university, state college or
community college that is a member of the System.

2. The Board shall adopt regulations for
the implementation of the Program, including, without limitation, regulations
setting forth requirements for residency, a limit on the number of qualified
beneficiaries, the termination, withdrawal and transfer of money paid into the
Trust Fund, the time within which the money paid into the Trust Fund must be
used, and payment schedules.

NRS 353B.090Development of Program by
Board; regulations. [Effective July 1, 2016.]

1. The Board
shall develop the Nevada Higher Education Prepaid Tuition Program for the
prepayment of tuition at a guaranteed rate which is established based on the
annual actuarial study required pursuant to NRS
353B.190 for undergraduate studies at a university, state college or
community college that is a member of the System.

2. The Board shall adopt regulations for
the implementation of the Program, including, without limitation, regulations
setting forth requirements for:

(a) Residency;

(b) A limit on the number of qualified
beneficiaries;

(c) The termination, withdrawal and transfer of
money paid into the Trust Fund;

(d) A payment received by the Trust Fund as a
matching contribution made as described in NRS
363A.137 or 363B.117 to be
credited to the qualified beneficiary on whose behalf the matching contribution
was made;

(e) The time within which the money paid into the
Trust Fund must be used; and

1. The Board may enter into a prepaid
tuition contract with a purchaser.

2. The Board shall create a prepaid
tuition contract in accordance with the provisions of this section.

3. The prepaid tuition contract must
include, without limitation:

(a) The terms and conditions under which the
purchaser shall remit payment, including, without limitation:

(1) The amount and number of payments that
are required from the purchaser on behalf of the qualified beneficiary;

(2) The date upon which each payment is
due; and

(3) A provision for a reasonable penalty
for a delinquent payment or default.

(b) The name and date of birth of the qualified
beneficiary on whose behalf the prepaid tuition contract is drawn.

(c) The terms and conditions under which another
person may be substituted as the qualified beneficiary.

(d) The terms and conditions under which the
purchaser, or another person designated by the purchaser, may terminate the
prepaid tuition contract, receive a refund of money that he or she has paid
into the Trust Fund or withdraw money that he or she has paid into the Trust
Fund, including, without limitation, a provision allowing the Board to impose a
fee that amounts to more than a de minimis penalty.

(e) A provision that the Board shall, after
making a reasonable effort to contact the purchaser, report any money that has
been deposited under a prepaid tuition contract that has not been terminated
and has not been used within a specified period to the State Treasurer for
proper disposition.

(f) The number of semesters for which the
purchaser is contracting.

(g) A provision that money paid into the Trust
Fund under a prepaid tuition contract may be applied toward tuition at:

(1) A university, state college or
community college that is a member of the System;

(2) An accredited college or university in
this State that is not a member of the System; or

(3) An accredited community college,
college or university in another state.

Ê Payments
authorized pursuant to subparagraph (2) or (3) must not exceed the projected
highest payment for tuition for the current academic year at a university that
is a member of the System.

(h) Any other term or condition that the Board
considers necessary or proper.

NRS 353B.105Agreement to payroll deductions for prepaid tuition contract
authorized.The State of Nevada,
an agency, county, municipality or other political subdivision of the State, or
any other public or private employer may enter into an agreement to remit
payments toward a prepaid tuition contract on behalf of an employee through
payroll deductions.

1. May modify the regulations for the
implementation of the Program adopted pursuant to subsection 2 of NRS 353B.090.

2. May establish agreements to fulfill its
obligations under the prepaid tuition contracts.

3. May contract for any necessary good or
service, including, without limitation, the power to engage financial
consultants, actuaries or legal counsel.

4. May procure insurance against any loss
in connection with the property, assets or activities of the Trust Fund, the
State Treasurer or the Board.

5. May solicit and accept a gift,
including, without limitation, a bequeathment or other testamentary gift,
grant, loan or aid from any source.

6. Shall solicit answers to requests for
rulings from the Internal Revenue Service regarding the tax status of fees paid
to or on behalf of a purchaser or a qualified beneficiary pursuant to a prepaid
tuition contract.

NRS 353B.130Limitation on effect of action by Board.An act or undertaking of the Board does not
constitute a debt of the State of Nevada, or any political subdivision thereof,
or a pledge of the full faith and credit of the State of Nevada, or of any political
subdivision thereof, and is payable solely from the Trust Fund.

1. The Nevada Higher Education Prepaid
Tuition Trust Fund is hereby created within the State Treasury to allow the
cost of tuition to be paid in advance of enrollment at an institution of higher
education.

2. The Trust Fund consists of payments
received pursuant to:

(a) A prepaid tuition contract;

(b) A bequest, endowment or grant from the
Federal Government; or

(c) Any other public or private source of money.

3. Money in the Trust Fund that is not
expended during any biennium does not revert to the State General Fund at any
time.

1. The Nevada Higher Education Prepaid
Tuition Trust Fund is hereby created within the State Treasury to allow the
cost of tuition to be paid in advance of enrollment at an institution of higher
education.

1. The Board shall create a comprehensive
plan that specifies the policies for investment which the State Treasurer shall
follow in administrating the Trust Fund.

2. The Board may authorize the State
Treasurer to invest the property of the Trust Fund in:

(a) A bond, note, certificate or other general
obligation of the State of Nevada, or of a county, city, general improvement
district or school district of the State of Nevada.

(b) A corporate bond of a corporation created by
or existing under the laws of the United States or of a state, district or
territory of the United States with a rating not lower than “A” or its
equivalent by a nationally recognized rating service. The total amount invested
in such bonds must not exceed 50 percent of the book value of the total fixed
income investments of the Trust Fund.

(c) Commercial paper of a corporation created by
or existing under the laws of the United States or of a state, district or
territory of the United States or of a wholly owned subsidiary of such a
corporation with a rating not lower than “A-3” or “P-3” by a nationally
recognized rating service.

(d) A bond, note, debenture or other valid
obligation that is issued by the Treasury of the United States.

(e) A bond, note, debenture or other security
that is issued by an agency or instrumentality of the United States or that is
fully guaranteed by the United States in:

(1) The Federal Farm Credit Bank;

(2) The Federal National Mortgage
Association;

(3) The Federal Home Loan Bank;

(4) The Federal Home Loan Mortgage
Corporation; or

(5) The Government National Mortgage
Association.

(f) A bond, note, debenture or other security in
the Student Loan Marketing Association, regardless of whether it is guaranteed
by the United States.

(g) Collateralized mortgage obligations that are
rated “AAA” or its equivalent by a nationally recognized rating service.

(h) Asset-backed securities that are rated “AAA”
or its equivalent by a nationally recognized rating service.

(i) Money market mutual funds that:

(1) Are registered with the Securities and
Exchange Commission;

(2) Are rated by a nationally recognized
rating service as “A” or its equivalent, or better; and

(3) Invest only in securities issued by
the Federal Government or agencies of the Federal Government or in repurchase
agreements fully collateralized by such securities.

Ê The total
dollar amount invested in such mutual funds must not exceed 20 percent of the
total dollar amount of the Trust Fund that is invested.

(j) Common or preferred stock of a corporation
created by or existing under the laws of the United States or of a state,
district or territory of the United States, if:

(1) The stock of the corporation is:

(I) Listed on a national stock
exchange; or

(II) Traded in the over-the-counter
market, if the price quotations for the over-the-counter stock are quoted by
the National Association of Securities Dealers Automated Quotations System,
NASDAQ;

(2) The outstanding shares of the
corporation have a total market value of not less than $50,000,000;

(3) The maximum investment in stock is not
greater than 60 percent of the book value of the total investments of the Trust
Fund;

(4) Except for investments made pursuant
to paragraph (m), the amount of an investment in a single corporation is not
greater than 3 percent of the book value of the assets of the Trust Fund; and

(5) Except for investments made pursuant
to paragraph (m), the total amount of shares owned by the Trust Fund is not
greater than 5 percent of the outstanding stock of a single corporation.

(k) A covered call or put option on securities
that are traded on one or more of the regulated exchanges in the United States.

(l) A pooled or commingled real estate fund or a
real estate security that is managed by a corporate trustee or by an investment
advisory firm that is registered with the Securities and Exchange Commission,
either of which may be retained by the Board as an investment manager. The
shares and the pooled or commingled fund must be held in trust. The total book
value of an investment made under this paragraph must not at any time be
greater than 5 percent of the total book value of all investments of the Trust
Fund.

(m) Mutual funds or common trust funds that
consist of any combination of the investments listed in paragraphs (a) to (l),
inclusive.

3. The State Treasurer shall exercise the
standard of care in investing the property of the fund that a person of
prudence, discretion and intelligence would exercise in the management of his
or her own affairs, given the prevailing circumstances, not in regard to
speculation but rather to the permanent disposition of the property,
considering the potential income from and the probable safety of his or her
capital.

4. Subject to the terms, conditions,
limitations and restrictions set forth in this section, the State Treasurer may
sell, assign, transfer or dispose of the property and investments of the Trust
Fund upon the approval of a majority of the Board.

5. The assets of the Trust Fund:

(a) Must be maintained, invested and expended
solely for the purposes of NRS 353B.010 to 353B.190, inclusive; and

(b) Must not be loaned, transferred or otherwise
used for a purpose other than the purposes of NRS
353B.010 to 353B.190, inclusive.

6. The State Treasurer shall credit any
income derived from an investment or a gain from a sale or exchange of an
investment to the Trust Fund.

7. The State Treasurer shall acquire each
investment for the Trust Fund at a price not to exceed the prevailing market
value for such an investment.

8. Each investment in the Trust Fund must
be clearly marked to indicate ownership by the Trust Fund.

9. The State Treasurer, an employee of the
State Treasurer, or a member or employee of the Board shall not:

(a) Have a direct or indirect interest in the
income, gain or profit of an investment that the State Treasurer makes;

(b) Receive pay or emolument for his or her
services in connection with an investment that the State Treasurer makes; or

(c) Become an endorser, surety or obligor for
money that is borrowed from the Trust Fund.

10. If the annual actuarial study
performed pursuant to NRS 353B.190 reveals that
there is insufficient money to ensure the actuarial soundness of the Trust
Fund, the Board shall modify the terms of subsequent prepaid tuition contracts.

11. The terms, conditions, limitations and
restrictions regarding investments of the Trust Fund listed in this section
apply only at the time an investment is originally acquired and must not be
construed to require the liquidation of an investment at any time.

1. Prepare an annual report setting forth
in appropriate detail an accounting of the Trust Fund and a description of the
financial condition of the Trust Fund at the close of each fiscal year,
including, without limitation, a statement of projected receipts, disbursements
and operating costs of the Trust Fund.

2. Submit the report prepared pursuant to
subsection 1 on or before March 31 of each year:

(a) In odd-numbered years, to the Governor, the
Senate Standing Committee on Finance and the Assembly Standing Committee on
Ways and Means.

(b) In even-numbered years, to the Governor and
the Interim Finance Committee.

NRS 353B.180Annual audit.The
Board shall contract with a certified public accounting firm to perform an
annual audit of the accounts and records of the State Treasurer and the Board
showing the receipts to and disbursements from the Trust Fund. The cost of the
audit must be borne by the Trust Fund. The State Treasurer shall make available
for inspection all records necessary to perform the audit.

NRS 353B.190Annual actuarial study.The
Board shall contract with a certified actuary to perform an annual actuarial
study, the cost of which must be borne by the Trust Fund. The State Treasurer
shall make available for inspection all records necessary to perform the
actuarial study.

1. The State Treasurer shall adopt
regulations to establish and carry out the Nevada College Savings Program,
which must comply with the requirements of a qualified state tuition program
pursuant to 26 U.S.C. § 529.

2. The regulations must be consistent with
the provisions of the Internal Revenue Code set forth in Title 26 of the United
States Code, and the regulations adopted pursuant thereto, to ensure that the
Nevada College Savings Program meets all criteria for federal tax-deferred or
tax-exempt benefits, or both.

3. The regulations must provide for the
use of savings trust agreements and savings trust accounts to apply
distributions toward qualified higher education expenses at eligible
educational institutions in accordance with 26 U.S.C. § 529.

4. The regulations must set forth
requirements for a payment received by the Trust Fund as a matching
contribution made as described in NRS
363A.137 or 363B.117 to be
credited to the savings trust account to which the contribution was made.

5. The regulations may include any other
provisions not inconsistent with federal law that the State Treasurer
determines are necessary for the efficient and effective administration of the
Nevada College Savings Program and the Trust Fund.

NRS 353B.320Delegation by Board of administrative powers and duties to State
Treasurer.The Board may delegate
to the State Treasurer any of its administrative powers and duties specified in
NRS 353B.300 to 353B.370,
inclusive, if the Board determines that such delegation is necessary for the
efficient and effective administration of the Nevada College Savings Program and
the Trust Fund.

NRS 353B.330Savings trust accounts and agreements not guaranteed by full
faith and credit.Savings trust
accounts and agreements entered into pursuant to NRS
353B.300 to 353B.370, inclusive, are not
guaranteed by the full faith and credit of the State of Nevada.

2. The Trust Fund is an instrumentality of
this state, and its property and income are exempt from all taxation by this
state and any political subdivision thereof.

3. The Trust Fund consists of:

(a) All money deposited in accordance with
savings trust agreements;

(b) All money received as a matching contribution
made as described in NRS 363A.137 or 363B.117; and

(c) All earnings on the money in the Trust Fund.

4. Money in the Trust Fund:

(a) Is not the property of this state, and this
state has no claim to or interest in such money; and

(b) Must not be commingled with money of this
state.

5. A savings trust agreement or any other
contract entered into by or on behalf of the Trust Fund does not constitute a
debt or obligation of this state, and no account owner is entitled to any money
in the Trust Fund except for that money on deposit in or accrued to his or her
account.

6. The money in the Trust Fund must be
preserved, invested and expended solely pursuant to and for the purposes
authorized by NRS 353B.300 to 353B.370, inclusive, and must not be loaned or
otherwise transferred or used by this state for any other purpose.

NRS 353B.350Administration by State Treasurer; establishment of Program,
Administrative and Endowment Accounts.

1. The Trust Fund and any account
established by the State Treasurer pursuant to this section must be
administered by the State Treasurer.

2. The State Treasurer shall establish
such accounts as he or she determines necessary to carry out his or her duties
pursuant to NRS 353B.300 to 353B.370, inclusive, including, without limitation:

(a) A Program Account in the Trust Fund; and

(b) An Administrative Account and an Endowment
Account in the State General Fund.

3. The Program Account must be used for
the receipt, investment and disbursement of money pursuant to savings trust
agreements.

4. The Administrative Account must be used
for the deposit and disbursement of money to administer and market the Nevada
College Savings Program and to supplement the administration and marketing of
the Nevada Higher Education Prepaid Tuition Program set forth in NRS 353B.010 to 353B.190,
inclusive.

5. The Endowment Account must be used for
the deposit of any money received by the Nevada College Savings Program that is
not received pursuant to a savings trust agreement and, in the determination of
the State Treasurer, is not necessary for the use of the Administrative
Account. The money in the Endowment Account may be expended:

(a) For any purpose related to the Nevada College
Savings Program;

(b) To pay the costs of administering the
Governor Guinn Millennium Scholarship Program created pursuant to NRS 396.926, but such costs must not
exceed an amount equal to 3 percent of the anticipated annual revenue to the State
of Nevada from the settlement agreements with and civil actions against
manufacturers of tobacco products anticipated for deposit in the Trust Fund; or

(c) In any other manner which assists the
residents of this state to attain postsecondary education.

NRS 353B.360Acceptance and expenditure of money provided by private entities
for direct expenses and marketing of Fund.The
State Treasurer may accept and expend on behalf of the Trust Fund money
provided by private entities for direct expenses or marketing. Such money is
not a part of the Trust Fund.

1. The Board shall establish a
comprehensive investment plan for the money in the Trust Fund.

2. Notwithstanding the provisions of any
specific statute to the contrary, the Board may invest or cause to be invested
any money in the Trust Fund, including, without limitation, the money in the
Program Account, in any manner reasonable and appropriate to achieve the
objectives of the Nevada College Savings Program, exercising the discretion and
care of a prudent person in similar circumstances with similar objectives. The
Board shall consider the risk, expected rate of return, term or maturity,
diversification of total investments, liquidity and anticipated investments in
and withdrawals from the Trust Fund.

3. The Board may establish criteria and
select investment managers, mutual funds or other such entities to act as
investment managers for the Nevada College Savings Program.

4. The Board may employ or contract with
investment managers, evaluation services or other services as determined by the
Board to be necessary for the effective and efficient operation of the Nevada
College Savings Program.

5. The Board may employ personnel and
contract for goods and services necessary for the effective and efficient
operation of the Nevada College Savings Program.

6. The marketing plan and materials for
the Nevada College Savings Program must be approved by the Board.

7. The Board may prescribe terms and
conditions of savings trust agreements.

8. The Board may contract with one or more
qualified entities for the day-to-day operations of the Nevada College Savings
Program as the Program Administrator for the management of the marketing of the
Program, the administration of the comprehensive investment plan and Trust
Fund, the selection of investment managers for the Nevada College Savings
Program and the performance of similar activities.

9. All contracts authorized by this
section are subject to the requirements of chapter
333 of NRS, except that:

(a) Notwithstanding the provisions of subsection
1 of NRS 333.165 to the contrary, the
Board shall contract for all services regardless of the estimated value of the
services; and

(b) Notwithstanding the provisions of NRS 333.335 to the contrary, each proposal
received by the Board concerning services must be evaluated by the Board at a
public meeting and each contract for services must be awarded by the Board at a
public meeting.

NRS 353B.700Definitions.As
used in NRS 353B.700 to 353B.930,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 353B.710 to 353B.770,
inclusive, have the meanings ascribed to them in those sections.

NRS 353B.730“Opt-in child” defined.“Opt-in
child” means a child for whom an education savings account has been established
pursuant to NRS 353B.850, who is not enrolled
full-time in a public or private school and who receives all or a portion of
his or her instruction from a participating entity, as defined in NRS 353B.750.

NRS 353B.740“Parent” defined.“Parent”
means the parent, custodial parent, legal guardian or other person in this
State who has control or charge of a child and the legal right to direct the
education of the child.

NRS 353B.750“Participating entity” defined.“Participating
entity” means a private school that is licensed pursuant to chapter 394 of NRS or exempt from such licensing
pursuant to NRS 394.211, an eligible
institution, a program of distance education that is not offered by a public
school or the Department, a tutor or tutoring agency or a parent that has
provided to the State Treasurer the application described in subsection 1 of NRS 353B.900.

NRS 353B.850Establishment of account; requirements; termination and renewal
of agreement to establish account; prohibition against establishing account for
child attending school outside this State or homeschooled child.

1. Except as otherwise provided in
subsection 10, the parent of any child required by NRS 392.040 to attend a public school who
has been enrolled in a public school in this State during the period
immediately preceding the establishment of an education savings account
pursuant to this section for not less than 100 school days without interruption
may establish an education savings account for the child by entering into a
written agreement with the State Treasurer, in a manner and on a form provided
by the State Treasurer. The agreement must provide that:

(a) The child will receive instruction in this
State from a participating entity for the school year for which the agreement
applies;

(b) The child will receive a grant, in the form
of money deposited pursuant to NRS 353B.860 in the
education savings account established for the child pursuant to subsection 2;

(c) The money in the education savings account
established for the child must be expended only as authorized by NRS 353B.870; and

(d) The State Treasurer will freeze money in the
education savings account during any break in the school year, including any
break between school years.

2. If an agreement is entered into
pursuant to subsection 1, an education savings account must be established by
the parent on behalf of the child. The account must be maintained with a
financial management firm qualified by the State Treasurer pursuant to NRS 353B.880.

3. The failure to enter into an agreement
pursuant to subsection 1 for any school year for which a child is required by NRS 392.040 to attend a public school does
not preclude the parent of the child from entering into an agreement for a
subsequent school year.

4. An agreement entered into pursuant to
subsection 1 is valid for 1 school year but may be terminated early. If the
agreement is terminated early, the child may not receive instruction from a
public school in this State until the end of the period for which the last
deposit was made into the education savings account pursuant to NRS 353B.860, except to the extent the pupil was
allowed to receive instruction from a public school under the agreement.

5. An agreement terminates automatically
if the child no longer resides in this State. In such a case, any money
remaining in the education savings account of the child reverts to the State
General Fund.

6. An agreement may be renewed for any
school year for which the child is required by NRS 392.040 to attend a public school. The
failure to renew an agreement for any school year does not preclude the parent
of the child from renewing the agreement for any subsequent school year.

7. A parent may enter into a separate
agreement pursuant to subsection 1 for each child of the parent. Not more than
one education savings account may be established for a child.

8. Except as otherwise provided in
subsection 10, the State Treasurer shall enter into or renew an agreement
pursuant to this section with any parent of a child required by NRS 392.040 to attend a public school who
applies to the State Treasurer in the manner provided by the State Treasurer.
The State Treasurer shall make the application available on the Internet
website of the State Treasurer.

9. Upon entering into or renewing an
agreement pursuant to this section, the State Treasurer shall provide to the
parent who enters into or renews the agreement a written explanation of the
authorized uses, pursuant to NRS 353B.870, of the
money in an education savings account and the responsibilities of the parent
and the State Treasurer pursuant to the agreement and NRS
353B.700 to 353B.930, inclusive.

10. A parent may not establish an
education savings account for a child who will be homeschooled, who will
receive instruction outside this State or who will remain enrolled full-time in
a public school, regardless of whether such a child receives instruction from a
participating entity. A parent may establish an education savings account for a
child who receives a portion of his or her instruction from a public school and
a portion of his or her instruction from a participating entity.

NRS 353B.860Grant of money required to be deposited in account; amount of
grant; deduction of administrative costs; money remaining in account carries
forward if written agreement renewed.

1. If a parent enters into or renews an
agreement pursuant to NRS 353B.850, a grant of
money on behalf of the child must be deposited in the education savings account
of the child.

2. Except as otherwise provided in subsections
3 and 4, the grant required by subsection 1 must, for the school year for which
the grant is made, be in an amount equal to:

(a) For a child who is a pupil with a disability,
as defined in NRS 388.417, or a child
with a household income that is less than 185 percent of the federally
designated level signifying poverty, 100 percent of the statewide average basic
support per pupil; and

(b) For all other children, 90 percent of the statewide
average basic support per pupil.

3. If a child receives a portion of his or
her instruction from a participating entity and a portion of his or her
instruction from a public school, for the school year for which the grant is
made, the grant required by subsection 1 must be in a pro rata based on amount
the percentage of the total instruction provided to the child by the
participating entity in proportion to the total instruction provided to the
child.

4. The State Treasurer may deduct not more
than 3 percent of each grant for the administrative costs of implementing the
provisions of NRS 353B.700 to 353B.930, inclusive.

5. The State Treasurer shall deposit the
money for each grant in quarterly installments pursuant to a schedule
determined by the State Treasurer.

6. Any money remaining in an education
savings account:

(a) At the end of a school year may be carried
forward to the next school year if the agreement entered into pursuant to NRS 353B.850 is renewed.

(b) When an agreement entered into pursuant to NRS 353B.850 is not renewed or is terminated, because
the child for whom the account was established graduates from high school or
for any other reason, reverts to the State General Fund at the end of the last
day of the agreement.

(a) Refund any portion of the payment to the
parent who made the payment, unless the refund is for an item that is being
returned or an item or service that has not been provided; or

(b) Rebate or otherwise share any portion of the
payment with the parent who made the payment.

3. A parent who receives a refund pursuant
to subsection 2 shall deposit the refund in the education savings account from
which the money refunded was paid.

4. Nothing in this section shall be deemed
to prohibit a parent or child from making a payment for any tuition, fee,
service or product described in subsection 1 from a source other than the
education savings account of the child.

NRS 353B.880Management of account; annual audits; State Treasurer authorized
to take action upon determination of substantial misuse of money in account.

1. The State Treasurer shall qualify one
or more private financial management firms to manage education savings accounts
and shall establish reasonable fees, based on market rates, for the management
of education savings accounts.

2. An education savings account must be
audited randomly each year by a certified or licensed public accountant. The
State Treasurer may provide for additional audits of an education savings
account as it determines necessary.

3. If the State Treasurer determines that
there has been substantial misuse of the money in an education savings account,
the State Treasurer may:

(a) Freeze or dissolve the account, subject to
any regulations adopted by the State Treasurer providing for notice of such
action and opportunity to respond to the notice; and

(b) Give notice of his or her determination to
the Attorney General or the district attorney of the county in which the parent
resides.

1. The following persons may become a
participating entity by submitting an application demonstrating that the person
is:

(a) A private school licensed pursuant to chapter 394 of NRS or exempt from such licensing
pursuant to NRS 394.211;

(b) An eligible institution;

(c) A program of distance education that is not
operated by a public school or the Department of Education;

(d) A tutor or tutoring facility that is
accredited by a state, regional or national accrediting organization; or

(e) The parent of a child.

2. The State Treasurer shall approve an
application submitted pursuant to subsection 1 or request additional
information to demonstrate that the person meets the criteria to serve as a
participating entity. If the applicant is unable to provide such additional
information, the State Treasurer may deny the application.

3. If it is reasonably expected that a
participating entity will receive, from payments made from education savings
accounts, more than $50,000 during any school year, the participating entity
shall annually, on or before the date prescribed by the State Treasurer by
regulation:

(a) Post a surety bond in an amount equal to the
amount reasonably expected to be paid to the participating entity from
education savings accounts during the school year; or

(b) Provide evidence satisfactory to the State
Treasurer that the participating entity otherwise has unencumbered assets
sufficient to pay to the State Treasurer an amount equal to the amount
described in paragraph (a).

4. Each participating entity that accepts
payments made from education savings accounts shall provide a receipt for each
such payment to the parent who makes the payment.

5. The State Treasurer may refuse to allow
an entity described in subsection 1 to continue to participate in the grant
program provided for in NRS 353B.700 to 353B.930, inclusive, if the State Treasurer
determines that the entity:

(b) Has failed to provide any educational
services required by law to a child receiving instruction from the entity if
the entity is accepting payments made from the education savings account of the
child.

6. If the State Treasurer takes an action
described in subsection 5 against an entity described in subsection 1, the
State Treasurer shall provide immediate notice of the action to each parent of
a child receiving instruction from the entity who has entered into or renewed
an agreement pursuant to NRS 353B.850 and on
behalf of whose child a grant of money has been deposited pursuant to NRS 353B.860.

1. Each participating entity that accepts
payments for tuition and fees made from education savings accounts shall:

(a) Ensure that each child on whose behalf a
grant of money has been deposited pursuant to NRS
353B.860 and who is receiving instruction from the participating entity
takes:

(1) Any examinations in mathematics and
English language arts required for pupils of the same grade pursuant to chapter 389 of NRS; or

(2) Norm-referenced achievement
examinations in mathematics and English language arts each school year;

(b) Provide for value-added assessments of the
results of the examinations described in paragraph (a); and

(c) Subject to the Family Educational Rights and
Privacy Act of 1974, 20 U.S.C. § 1232g, and any regulations adopted pursuant
thereto, provide the results of the examinations described in paragraph (a) to
the Department of Education or an organization designated by the Department
pursuant to subsection 4.

2. The Department of Education shall:

(a) Aggregate the examination results provided
pursuant to subsection 1 according to the grade level, gender, race and family
income level of each child whose examination results are provided; and

(b) Subject to the Family Educational Rights and
Privacy Act of 1974, 20 U.S.C. § 1232g, and any regulations adopted pursuant
thereto, make available on the Internet website of the Department:

(1) The aggregated results and any
associated learning gains; and

(2) After 3 school years for which
examination data has been collected, the graduation rates, as applicable, of
children whose examination results are provided.

3. The State Treasurer shall administer an
annual survey of parents who enter into or renew an agreement pursuant to NRS 353B.850. The survey must ask each parent to
indicate the number of years the parent has entered into or renewed such an
agreement and to express:

(a) The relative satisfaction of the parent with
the grant program established pursuant to NRS 353B.700
to 353B.930, inclusive; and

(b) The opinions of the parent regarding any
topics, items or issues that the State Treasurer determines may aid the State
Treasurer in evaluating and improving the effectiveness of the grant program
established pursuant to NRS 353B.700 to 353B.930, inclusive.

4. The Department of Education may arrange
for a third-party organization to perform the duties of the Department
prescribed by this section.

1. The State Treasurer shall annually make
available a list of participating entities, other than any parent of a child.

2. Subject to the Family Educational
Rights and Privacy Act of 1974, 20 U.S.C. § 1232g, and any regulations adopted
pursuant thereto, the Department of Education shall annually require the
resident school district of each child on whose behalf a grant of money is made
pursuant to NRS 353B.860 to provide to the
participating entity any educational records of the child.

NRS 353B.930Autonomy of participating entity not limited; actions of
participating entity not actions of State Government.Except
as otherwise provided in NRS 353B.700 to 353B.930, inclusive, nothing in the provisions of NRS 353B.700 to 353B.930,
inclusive, shall be deemed to limit the independence or autonomy of a
participating entity or to make the actions of a participating entity the
actions of the State Government.